Sales tax cut on tea: Unilever assures FBR of passing benefit to consumers

In a letter addressed to the Federal Board of Revenue Chairman, Unilever Pakistan has reiterated its commitment that the benefit of reduction of sales tax in tea would be passed on to the general consumer.
"We would like to reconfirm that the benefit of any reduction in tariff would definitely be passed on to the general consumer, without which the incentive to smuggling of tea cannot be minimised and smuggled goods cannot be brought under the tax net," stated the letter requesting FBR to consider the proposal.
The letter was sent by the company in response to FBR's statement as quoted in Business Recorder on April 14 - The FBR considered a proposal on rationalisation of sales tax on tea as unviable during the ongoing budget exercise. The major rationale behind rejection of the proposal is that multinational companies may not pass on the benefit of reduction in the sales tax to the consumers. It has been apprehended that despite proposed sales tax zero-rating on tea, the consumers would not be given any benefit. Resultantly it is not viable to zero-rate sales tax on tea without giving any benefit to the general public."-PR